However, a worldwide economic crisis and oil prices slipping to less than US$50 per barrel have made 2009 a very different year.While the market for semisubmersibles and drillships in the U.S. Gulf of Mexico has remained fairly strong, the market for jackups has cratered. Facing jackup utilization of less than 60 percent, many drilling contractors are looking to move from the U.S. Gulf to Mexico to find work.So far unaffected by the downturn in activity, another four newbuild drillships and seven semisubmersibles are expected to arrive in the U.S. Gulf by the end of the year, all of which have firm contract commitments in place. Many of the newbuilds have deepwater capabilities, responding to the growing demand for deepwater activity in the U.S. Gulf.
Thursday, February 26, 2009
North American rig market driven by deepwater demand
After last year brought record oil prices, the offshore oil and gas industry could have been forgiven for an optimistic outlook.
However, a worldwide economic crisis and oil prices slipping to less than US$50 per barrel have made 2009 a very different year.While the market for semisubmersibles and drillships in the U.S. Gulf of Mexico has remained fairly strong, the market for jackups has cratered. Facing jackup utilization of less than 60 percent, many drilling contractors are looking to move from the U.S. Gulf to Mexico to find work.So far unaffected by the downturn in activity, another four newbuild drillships and seven semisubmersibles are expected to arrive in the U.S. Gulf by the end of the year, all of which have firm contract commitments in place. Many of the newbuilds have deepwater capabilities, responding to the growing demand for deepwater activity in the U.S. Gulf.Read More
However, a worldwide economic crisis and oil prices slipping to less than US$50 per barrel have made 2009 a very different year.While the market for semisubmersibles and drillships in the U.S. Gulf of Mexico has remained fairly strong, the market for jackups has cratered. Facing jackup utilization of less than 60 percent, many drilling contractors are looking to move from the U.S. Gulf to Mexico to find work.So far unaffected by the downturn in activity, another four newbuild drillships and seven semisubmersibles are expected to arrive in the U.S. Gulf by the end of the year, all of which have firm contract commitments in place. Many of the newbuilds have deepwater capabilities, responding to the growing demand for deepwater activity in the U.S. Gulf.
Wan Hai buying into Chinese line
Taipei: Taiwan's Wan Hai Lines is in talks to invest in a Chinese shipping company to expand its network and offset the severe industry downturn that could cut 30 percent off its revenue this year, Dow Jones reported.
Wan Hai Lines, the largest container shipping firm on intra-Asia routes by market share, has been cutting capacity on the Asia-Europe route and restructuring its network because of the slump in global trade and vessel overcapacity that has decimated freight rates and profit, company president Tony Chow said.An investment in a Chinese shipping firm would allow Wan Hai Lines to capitalize on the expected growth in China's river transport and trade between China and Southeast Asia, Chow told Dow Jones Newswires in an interview."We are positive on the domestic demand stimulus package implemented by the Chinese government, which will also create intra-Asia cargo as China and Asean remove trade tariffs," he said.Chow declined to name the Chinese company, but said a conclusion to the talks isn't imminent as Wan Hai Lines wants a stake of at least 51 percent in the firm."The size of the stake is the main contention point," he added.While Taiwan and China agreed on closer transport links in November, including launching direct daily charter flights and direct shipping links, there are still some restrictions on cross-strait business.
Major repairs to 'Hercules 170'
Recently established Arabian Gulf oil and gas company ASRY Offshore Services (AOS) has completed its first major contract which involved the upgrading and major repair of Hercules Offshore’s jack-up drilling rig ‘Hercules 170’.
‘Hercules 170’ arrived at ASRY’s shipyard in Bahrain in the second half of 2008 for a work package that included a number of upgrades to increase her performance and drilling capabilities. When diver inspections of the jack-up revealed problems with the spud cans, ASRY also took these repairs on board.Read More
‘Hercules 170’ arrived at ASRY’s shipyard in Bahrain in the second half of 2008 for a work package that included a number of upgrades to increase her performance and drilling capabilities. When diver inspections of the jack-up revealed problems with the spud cans, ASRY also took these repairs on board.
TOP Ships Announces Reduced Time Charter Rate for the mv ASTRALE
TOP Ships Inc. announced yesterday that it has agreed with Armada Singapore Pte Ltd., time charterers of the mv ASTRALE, to reduce the time-charter rate from $72,000 to $40,000 for the three remaining hire payments until the scheduled termination of the time charter and redelivery of the vessel to the Owners, which is expected to take place in April 2009.
The loss of hire to the Company is estimated to be approximately $1,500,000.TOP Ships Inc., formerly known as TOP Tankers Inc., is an international provider of worldwide seaborne crude oil and petroleum products and drybulk transportation services. The Company operates a combined tanker and dry bulk fleet as follows: A fleet of nine double-hull handymax tankers, with a total carrying capacity of approximately 0.4 million dwt, of which 44% are sister ships. Seven of the Company's handymaxes are on time charter contracts with an average term of one year with all of the time charters including profit sharing agreements above their base rates. Two of the Company's handymax tankers are fixed on a bareboat charter basis for a period of ten years.Read More
The loss of hire to the Company is estimated to be approximately $1,500,000.TOP Ships Inc., formerly known as TOP Tankers Inc., is an international provider of worldwide seaborne crude oil and petroleum products and drybulk transportation services. The Company operates a combined tanker and dry bulk fleet as follows: A fleet of nine double-hull handymax tankers, with a total carrying capacity of approximately 0.4 million dwt, of which 44% are sister ships. Seven of the Company's handymaxes are on time charter contracts with an average term of one year with all of the time charters including profit sharing agreements above their base rates. Two of the Company's handymax tankers are fixed on a bareboat charter basis for a period of ten years.
Origin posts profits gusher
Australia’s Origin Energy posted a 38% rise in half-year underlying profit and more than doubled its dividend, but has cut its full-year profit forecast.
The outfit also said it would scrap its planned share buyback programme citing current market conditions. Underlying profit for 2009 financial year is now expected to be between 20% and 25% higher than a year ago, Origin said in a statement today, compared with its October guidance of a 30% to 40% lift. Lower margins in the retail business in the second half, higher exploration expenses as well as lower earnings from its oil and condensate production amid a recent collapse in global oil prices will weigh on earnings, it said. Profits from New Zealand power company Contact Energy, 50% owned by Origin, will also make a lower contribution. "The board has determined that given the current market conditions, where availability of capital has been severely reduced, it is prudent for Origin to retain its funding capacity to enable it to invest in growth opportunities," Origin said in a statement. It would increase its first half dividend to 25 cents from 12 cents a year ago and will assess further capital management initiatives in the next financial year.
Read More
The outfit also said it would scrap its planned share buyback programme citing current market conditions. Underlying profit for 2009 financial year is now expected to be between 20% and 25% higher than a year ago, Origin said in a statement today, compared with its October guidance of a 30% to 40% lift. Lower margins in the retail business in the second half, higher exploration expenses as well as lower earnings from its oil and condensate production amid a recent collapse in global oil prices will weigh on earnings, it said. Profits from New Zealand power company Contact Energy, 50% owned by Origin, will also make a lower contribution. "The board has determined that given the current market conditions, where availability of capital has been severely reduced, it is prudent for Origin to retain its funding capacity to enable it to invest in growth opportunities," Origin said in a statement. It would increase its first half dividend to 25 cents from 12 cents a year ago and will assess further capital management initiatives in the next financial year.
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